Take Action Now to Protect Philanthropy
UPDATED JUNE 2, 2025
Act Immediately
Yesterday, the House passed the reconciliation bill, and while one harmful provision was removed, most remain and the stakes are high for philanthropy.
This week, as the final House version of the bill was being written and debated on the floor, IPA’s Foundations on the Hill (FOTH) delegation was working the halls of Congress. Your outreach to Indiana’s representatives eased their path. Our team met face-to-face with every Indiana congressional office, sharing how the bill would affect our communities—and making the case for changes.
Our efforts are being recognized nationally. IPA CEO Claudia Cummings recent op-ed in The Hill featured IPA’s concerns about taxing philanthropy—and we’ve heard it’s being read by lawmakers and staff as they begin shaping the Senate version.
We’ve been heard. But we haven’t finished.
What Was Removed from the Bill
The provision allowing the government to revoke nonprofit tax-exempt status without due process was removed from the bill.
This victory reflects the coordinated advocacy by IPA members, national philanthropy-serving organizations, and their members across the country.
But the bill now moves to the Senate, and your voice is needed to secure the next wins.
What’s Still in the Bill
1. Tiered Excise Tax on Private Foundations
The proposal to impose a steeply tiered excise tax on foundation investment income—up to 10% for the largest foundations—is projected to divert over $200 million each year away from Hoosier nonprofits and into the Washington bureaucracy. Every dollar taxed is a dollar not invested here at home in faith-based institutions, education, disaster relief, and other community priorities.
2. Corporate Giving Restrictions
The introduction of a 1% floor before corporations can deduct charitable contributions may unintentionally disincentivize giving, especially among small and mid-sized businesses that are vital community partners. In a state like Indiana, where local employers play an outsized role in civic life, this change could disincentivize giving, and it threatens to disrupt long-standing partnerships between local business and local solutions.
3. Expansion of Unrelated Business Income Tax (UBIT)
The proposed changes to the Unrelated Business Income Tax (UBIT), including taxes on parking and transportation, is an example of regulatory overreach that increases compliance burdens and diverts unrestricted resources away from programs that are typically used for innovation, and community responsiveness.
What We Support
The temporary universal charitable deduction for non-itemizers remains in the bill—a positive step that allows all taxpayers to support charitable work.
This Moment Belongs to You
All funders, including private foundations, are legally permitted to engage in advocacy on this tax issue under the "self-defense" exception. The foundation tax provision and charitable deduction directly affect foundations' ability to fulfill their charitable purposes, making this a permissible lobbying activity.
We know your time and resources are limited—that’s why we've created tools and templates to help you take action quickly. Every call, click, and signature strengthens our collective message. These harmful provisions must be stopped, and it won’t happen without you.
United in action,
Claudia Cummings
President & CEO
Indiana Philanthropy Alliance
